The New Zealand Dollar (NZD) is likely to trade in a sideways range of 0.6100/0.6140 or drift lower towards 0.6085, UOB Group analysts note.

NZD to drift lower towards 0.6085

24-HOUR VIEW: “We highlighted yesterday that NZD ‘is expected to drift lower.’ We added, ‘0.6085 is likely out of reach.’ Our view did not materialise as NZD traded in a range of 0.6105/0.6140, closing largely unchanged at 0.6124 (+0.08%). There has been no increase in either downward or upward momentum. In other words, NZD is likely to trade sideways today, probably between 0.6100 and 0.6140.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Tuesday (18 Jun, spot at 0.6130), wherein ‘as long as NZD remains below 0.6180, it could drift lower towards the support at 0.6085.’ While we continue to expect NZD to drift lower towards 0.6085, the ‘strong resistance’ level has moved lower to 0.6160 from 0.6180.”